The federal government is badly out of step with states — and most Americans — on the legalization of marijuana.

Nearly half of states, Washington and Guam have legalized marijuana for recreational use, including Minnesota and Ohio just last year. A full 38 states have legalized its medicinal use. Yet Washington clings to an outdated, overly-strict model that puts marijuana in the same category as heroin, LSD and Ecstasy — Schedule 1 drugs that are banned, with no accepted medical use and subject to the highest restrictions. By contrast, cocaine, opium, meth and even fentanyl are all classified as less restricted Schedule 2 drugs.

In his recent State of the Union speech, President Joe Biden indicated the need for his administration to take a fresh look at the issue, and said he was directing his cabinet to review the federal classification of the drug and “expunging thousands of convictions for the mere possession, because no one should be jailed for simply using.”

Such changes at the federal level would not only solve some of the logistical issues states have faced in legalizing cannabis, they also represent a smart political strategy for the president. Polls show young voters strongly support his efforts to ease federal restrictions.

States and businesses have had to work around the federal ban as they attempt to stand up weed marketplaces, create regulations and taxation systems and find ways to finance dispensaries. Many banks are loathe to make loans to such businesses. Some won’t even permit them to have debit or credit card services or checking accounts — even at state-authorized dispensaries— because of the federal ban.

In states like Minnesota, which is trying to give licensing priority to “social equity” applicants — those most harmed by past unequal enforcement of drug laws — the result has been an odd workaround: a loan program that can award up to $50,000 for start-up costs for cannabis businesses (to sell a product that is still illegal under federal law).

There are other obstacles as well. Since the drug is illegal federally, transporting it across state lines could result in federal criminal charges — even if it was purchased legally. And hours after Minnesota Governor Tim Walz signed legislation legalizing the drug’s use, the Bureau of Alcohol, Tobacco and Firearms issued a special clarification warning that unlawful users of a controlled substance are prohibited from possessing firearms or ammunition.

Despite all that, cannabis has gone mainstream in a way that would have seemed impossible a generation ago and it’s mushroomed into a $25 billion industry that supports more than 400,000 jobs in the US. In 2021 alone, legal sales in states shot up 40 percent. The growth is even more remarkable for having occurred in just the last decade, when Colorado became the first state to legalize the drug for recreational use in 2014.

And there’s another largely hidden cost to the harsh federal position on cannabis. Low-income populations and communities of color have been disproportionately impacted by marijuana crackdowns. As recently as 2020, national data showed Black people were four times more likely than White people to be arrested for marijuana-related offenses.

Biden has been laying the groundwork to ease federal restrictions on the drug since 2022, when he issued a presidential pardon for thousands of Americans convicted for “simple possession.” In 2023, he pardoned thousands of people who were convicted of use and possession on federal land and in Washington. Last year the Department of Health and Human Services recommended to the Drug Enforcement Agency that marijuana be made a Schedule III drug — the same category as drugs such as ketamine — which are considered to have low to moderate potential for abuse, have recognized medical value and can be obtained through a prescription. In January, the FDA agreed.

Whether the White House can accomplish the change before the election is an open question. But it’s a worthy goal. This sensible reform will remove obstacles for states where the drug is legal, ease the burden on businesses, and promote needed research to document its pros and cons now that it’s so widely in use.

And, as Biden said in his 2022 executive order, “too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.”

Patricia Lopez is a Bloomberg Opinion columnist covering politics and policy.